Cambrian Coal wins final approval to access $15 million DIP facility

By Caroline Salls

Pittsburgh, July 26 – Cambrian Coal LLC received final court approval to access $15 million in debtor-in-possession financing, according to an order filed Thursday with the U.S Bankruptcy Court for the Eastern District of Kentucky.

Richmond Hill Capital Partners and Essex Equity Joint Investment Vehicle, LLC are the DIP financing lenders. Richmond Hill Capital Partners will serve as administrative agent.

The facility will mature on the earliest of the effective date of a confirmed plan, six months after the bankruptcy filing date, the date of acceleration of the loans, the date of the closing of a sale of all or substantially all of the company’s assets and the date on which the court approves the extension of any other credit facilities over the objection of the DIP lenders.

Interest will accrue at a rate of 12%, with 50% to be paid in cash and 50% in kind.

Cambrian is a Belcher, Ky.-based coal company. The company filed bankruptcy on June 16 under Chapter 11 case number 19-51200.

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